Best Life Insurance For Seniors | Companies, Rates, & More

Best Life Insurance For Seniors

Finding the best life insurance for seniors can seem like searching for the lost city of Atlantis. We all are well aware of the repeated search results. It’s just not out there. Unlike Atlantis, though, senior life insurance policies do exist, including affordable plans with flexible terms.

In recent years, the insurance industry has started to adapt to ongoing U.S. trends, including meeting the insurance needs of a growing older population. We currently have close to 109 million people over the age of 50 who have a different outlook on aging. What? Me? I’m not old.

Another current trend is fewer of us are purchasing life insurance policies. It’s a cultural shift from the days not too long ago when you (or your parents) purchased a policy right out of school.

Today, that practice is less of a norm and more of a luxury. Although the reasons for the shift are not completely understood, it's safe to assume the economy is a major factor influencing such major financial decisions as purchasing insurance. Finally, many of us are falling short in saving enough for retirement.

Could purchasing a senior life insurance policy help give you peace of mind knowing you'll be able to leave some inheritance to your beneficiaries and cover funeral expenses after you’re gone? The answer is yes, but that will also depend on your personal situation.

Who is a Senior Citizen in the United States?

According to the U.S. government, an individual 65 years of age or older is considered a senior. This classification is tied to the age eligibility requirements of government programs such as Social Security and Medicare. With that said you also can start drawing on your social security payments at age 62, and you can begin to withdrawal from your IRA at age 59 ½ without penalty.

So, 65 is the standard but there are variants. For instance, restaurants, amusement parks, and movie theaters offer senior discounts to those who are 50 years or older. And, the coveted AARP membership becomes available when you turn 50. Businesses are reaching out to America’s growing senior population and that includes insurance companies.

Why Do You Need Senior Life Insurance?

1. Limited Savings – If you do not have much in retirement savings and are concerned you will not leave any inheritance to your beneficiaries then you may want to consider senior life insurance, especially term life because of its affordability. You can also purchase a final expense insurance policy that covers medical costs and funeral expenses as well as other end-of-life expenses.
2. Financial Dependents – We recommend you purchase a senior life insurance policy if you have financial dependents such as a spouse, children, or other family members who rely on your income. If you have a disabled child or family member, we highly recommend you consider a life insurance policy for seniors to guarantee these individuals will be protected and financially cared for after you're gone.
3. Protection from Market Volatility – A life insurance policy guarantees replacement income to your beneficiaries if there is a stock market crash and you pass away before your financial portfolio can recover. 

How Did We Choose the Best Senior Life Insurance Plans?

We researched hundreds of companies and selected our top picks based on the following factors: 

1. Financial Stability – You want an insurance company that has financial strength and stability. In other words, a reliable company that will pay your claims. We looked at market share according to the National Association of Insurance Commissioners (NAIC), and the underwriter's financial ratings from independent agencies such as A.M. Best, all of which you can look up online.
2. Reputation & Customer Experience – Online consumer reviews are an excellent resource to verify a company’s reputation and customer satisfaction ratings. The Better Business Bureau (BBB) and the NAIC complaint database, which compares a company's complaint ratio to the national average, are two such sources.
3. Policies – Our research focused on term life insurance policies over whole life because term life may be a more affordable choice for seniors looking for financial protection as opposed to an investment. Guaranteed issue whole life insurance is the exception because it provides coverage to those 50 to 85 years of age. We also looked at final expense policies, which are intended to be used to cover any end-of-life costs including funeral services, the maximum death benefit of each policy, and additional features like fixed rates and guaranteed renewability.
4. Flexibility & Riders – We looked at available riders, which allow policyholders to customize their plans and afford greater coverage flexibility. Some of these include the guaranteed insurability rider, the accidental death benefit rider, the critical illness rider, and the disability income rider.

And, of course, one of the most important factors we looked into was the age requirements or the policies offered to individuals 50 to 85 years old. All the companies we reviewed offer term life or guaranteed universal life insurance, regardless of age, with or without a required medical exam (varies by carrier and policy).

What are the Best Senior Life Insurance Plans?

The following are our top companies offering the best senior life insurance plans:

AIG Life Insurance

Founded in 1995, AIG Direct Insurance Services, Inc., operates as a subsidiary of American General Life Insurance Company and is a leading provider of life insurance products in the United States. It offers multiple policies including term, whole, universal, and specializes in life insurance options.

Its ‘Guaranteed Issue Whole Life Insurance’ is specifically designed for ages 50 to 85. As part of the plan’s guaranteed acceptance, there is no medical exam required and applicants cannot be turned down based on pre-existing conditions. In addition to the coverage limit of $25,000, AIG Direct also includes living benefits associated with chronic and terminal illnesses.

The company also offers term life insurance in 10 to 30 term lengths, which increase in 5-year increments. The company has strong financial ratings including a rating of A with A.M. Best. AIG Direct is an excellent choice for those shoppers who are seeking a flexible plan with the option of add-ons.

Fidelity Life Insurance

Fidelity Life is one of the oldest insurers in the United States endeavoring to provide peace of mind to middle Americans through a comprehensive line of life insurance products. The company is headquartered in Chicago, Illinois, and was founded in 1896.

Fidelity Life offers a RAPIDecision™ Senior Life insurance product that is available in both term (ages 50 to 70) and whole life (ages 50 to 85) variants. These plans allow policyholders to choose their own term lengths, have a maximum death benefit of $1 million, and (with few exceptions) don't require a medical exam.

The company also offers a RAPIDecision™ Final Expense policy with coverage amounts ranging from $5,000 to $35,000. These policies do not require a medical exam and are targeted to individuals ages 50 to 85.

With an industry-leading maximum coverage amount of $150,000 on its senior life insurance policy, Fidelity Life is recommended for those who require more flexibility than other providers can offer.

Mass Mutual Life Insurance

MassMutual Life Insurance was founded in 1851 and is headquartered in Springfield, Massachusetts. The company serves nearly five million customers through a wide range of insurance products including life, long-term care, disability income, and critical illness.

Its guaranteed acceptance life insurance’ program is meant to provide older applicants with insurance, without the need for a medical exam. Specifically intended for those between 50 and 75, MassMutual offers affordable and customizable coverage options ranging from $2,000 to $25,000 in 10, 15, or 20-year term lengths. It also offers 
disability income and critical illness riders.

MassMutual holds a rating of A++ from A.M. Best and an A+ rating with the Better Business Bureau with only one negative review. Its complaint ratio is well below the national average, according to NAIC. MassMutual is fantastic for those who are seeking an excellent customer experience in addition to flexible plan options.